Fansen

The medical industry has shifted the demand pattern for electronic components

As the proportion of medical devices in people’s daily health care applications increases, the products continue to reduce costs while the most important concerns are safety, reliability, ease of use and other human requirements. At the same time, patient data is extremely private and must be safely protected. On the other hand, diagnostic accuracy directly affects the diagnostic results of the device, which is also the focus of future product design concerns.

In terms of intelligence, medical electronic products are increasingly integrated functions, such as monitoring equipment that integrates various functions such as diagnosis, monitoring, image, communication, etc., which are practical and easy to operate. In addition, there are more and more products that are targeted to the common diseases in the region, the specific conditions of patients and the payment level of medical institutions. Specifically, products with the same function will be recombined in terms of components and function settings according to the specific conditions of different regions and different medical institutions, and price adjustments will be made to better suit the actual needs of different purchasers.

Current situation and competition

At present, domestic medical electronics companies are divided into two main categories. One is the large medical electronics enterprises led by Myriad. These companies are mainly oriented towards the medical electronics market, and generally have their core competitive technologies and related products, and the direction of development tends to be more towards high-end medical electronics research and development and overall medical electronics system construction. Domestic medical resources as a whole is still a shortage of state, and medical equipment imports are huge, so this type of enterprise with the development of the market and the depth of localization alternative, sustainable growth space.

Another is the main home medical electronic products and portable, wearable health monitoring equipment for small and medium-sized enterprises. Most of the products of such enterprises are OEM production, mainly relying on big data, cloud computing and other means, mainly to play health monitoring, medical records management and other peripheral medical services. As the business competition threshold of these enterprises is low and there are many market participants, it takes a long time to accumulate to form a certain competitive barrier, and the added value of services is not high, so most of them are still in the stage of relying on financing to develop the market and accumulate users.

With the improvement of national health awareness, the value of such enterprises will gradually reflect, but most small and medium-sized companies will fade out of the market, and the market share will still be concentrated in the hands of a limited number of enterprises.

In March 2016, the Beijing Municipal Health Planning Commission issued a notice to strictly prohibit doctors from cooperating with commercial companies to register and add numbers, and some hospitals even asked doctors to uninstall the commercial companies’ APPs; in May, the well-known pharmaceutical e-commerce company ” In May, the well-known pharmaceutical e-commerce company “Medicine to Power” announced the cessation of its one-hour drug delivery business, followed shortly by the suspension of its operations; in July, the CFDA urgently called a halt to the Internet third-party platform drug online retail pilot.

Due to the special nature of the medical industry, the Internet medical industry after rapid development, the lack of government regulation, mobile medical APP single function, poor medical experience and other problems gradually highlighted, the industry adjustment as expected. After this, the gray area of playing government rubbish is no longer a place for mobile medical, and the industry gradually tends to be rational and mature, and enters a new stage of development.

In addition, investment in the field of molecular diagnostics has increased. Molecular diagnostics is a technology that diagnoses by detecting changes in the structure or expression levels of biomolecules in patients, and is the basis of precision medicine. 2016, the global molecular diagnostics field was active in mergers and acquisitions, with an overall rise of 23%, including Abbott’s $5.8 billion acquisition of Alere, Thermo Fisher’s $4.2 billion acquisition of FEI and $1.3 billion acquisition of Onfield Biochip.

Meanwhile, China launched a special project on precision medicine research, aiming to build a big data platform for the prevention and diagnosis and treatment of major diseases from 2017 to 2019, and to promote a number of precision treatment drugs and molecular testing products into the national medical insurance catalog. In 2017, China’s molecular diagnostic field ushered in a development boom, with genetic testing equipment, biochips, PCR instruments and other related products becoming the darlings of investment.

Competition in the mid- and low-end medical electronic devices market was fierce in 2017. One is due to the increasingly high level of research and development and manufacturing of high-end medical electronic devices in China, the competition with foreign brands intensified, seriously squeezing the originally saturated high-end medical electronics market, medical electronics industry giants Siemens, GE, Philips, etc. have launched low-end medical electronic devices; the second is the development of medical technology so that the main function of medical electronic devices from diagnosis and treatment to health care, and gradually popularized to the grassroots. High-end medical electronics also need to develop the market in the low-end market and grassroots.

Expert Opinions

According to the development of the medical device industry, the Foresight Industry Research Institute has projected that the market size of China’s medical device industry will reach 566.2 billion yuan by 2022, based on a 15% growth rate. Recently, I visited Shanghai Medical Device Industry Association and interviewed Mr. Wang Yunlong, Deputy Secretary General. Mr. Wang Yunlong believes that the medical device field is an industry with both opportunities and competition, and the medical device industry will still maintain a relatively fast growth rate in the next few years.

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